Multiple Choice
The Bondi Pizza Palace is considering opening a new store at a start-up cost of $700 000.The initial investment will be depreciated straight line to zero over the 15-year life of the project.Based on the income projections shown below what is the average accounting rate of return?
A) 13.05 per cent
B) 13.68 per cent
C) 14.01 per cent
D) 14.59 per cent
E) 14.76 per cent
Correct Answer:
Verified
Correct Answer:
Verified
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